Funding and Spending: What Price Distance Education?

Overview & Synopsis

This paper explains methods of handling information about real costs to develop a model that is then used to forecast future costs of specified distance education activities and to obtain funding for these activities. It is addressed to anyone concerned about acquiring and spending money in distance education--managers of systems and institutions, department heads, and people interested in the actual costs of activities. The paper takes the approach to funding distance education that involves identifying characteristics costs of distance education and funding it on the basis of costs. It explains methods of handling information about real costs, including variable and fixed costs and student numbers, to develop a model used to forecast future costs of specified distance education activities and to obtain funding for them. The procedure of building a bridge between the accounting system and funding costs analysis is described, a process that involves using allocation keys and a cost classification. (YLB)